All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
Boris Johnson’s announcement on Halloween was anything but unprecedented, given the leaks to the media earlier in the week. From 5 November, England went into another month-long lockdown to end on 2 December. When this happened back in March, we saw a global stock market crash which started the COVID-19 recession.
Will this lockdown, which is creatively being called “Lockdown 2”, cause another crash?
It’s unlikely that lockdown 2 is going to have the same impact on the stock market that it had back in March, given that this time it’s expected.
However, if the first lockdown tells us anything, it’s that stocks likely to do well are those that offer value to people in lockdown. We were all using Zoom 20 times a day, favouring comfy clothes bought from boohoo and keeping fit with exercise bikes and treadmills bought on Amazon (did anyone keep that up?).
Without much else to do, especially with the weather getting colder, it’s likely that we’ll stick to the same habits this time around. “Alexa, add yeast and bread flour to my shopping list.”
So, without much further ado, let’s look at some lockdown stocks to watch.
Online clothing retailers
The last lockdown saw an influx of people buying nice tops to look smart in Zoom calls (which were, undoubtedly, paired with some comfy pyjama bottoms). We should probably have enough to tide us over, but with the onset of cold weather, it’s time to stock up on jumpers and wooly tights.
Essential shops like supermarkets are allowed to remain open during the second lockdown. After all, where else will we stock up on all that loo roll? These retailers have majorly upped their delivery slots since coronavirus came about, too.
This could see a shift in shopping behaviour. If it’s got a delivery slot available, you can easily go with a supermarket you wouldn’t usually visit. If your regular have no slots available, what’s stopping you from jumping ship and trying out someone else? What might be a longer drive or walk when not in lockdown is nothing more than a new tab during lockdown.
Food delivery companies
With many fast food outlets having to become delivery only from Thursday, it’s likely that companies like Just Eat and Deliveroo will see another increase in customers during lockdown 2. It’s hungry business sitting around doing nothing all day.
The good news is that companies are in a much better position this time around, so it’s unlikely we’ll see McDonalds or KFC closing their doors this time around. We’re all pretty versed in ordering ourselves a takeaway and having a glass or two of wine instead of heading out for a meal.
Pet shops and supply stores
The last lockdown saw lots of people adopting pets to keep them company during lockdown. With the weather keeping you inside more, there’s a chance this could happen again.
The week of March 16 saw 121% more dogs adopted from Battersea than the week before, and 33% more cats.
This means that people are spending more money on pet supplies like beds, food, toys and even cat prosecco. This has helped companies like Pets at Home. And don’t forget that Christmas is coming – so all of these new pet owners will be filling stockings for their new four-legged friends.
But remember: a pet is for life, not just for lockdown.
Compare investment services
Warning: This article offers information about investing and the stock market, but is not personal investing advice. The value of investments can fall as well as rise, and you may get back less than you invested. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please get professional advice, for example from a financial adviser.
*Disclaimer: The offers compared on this page are chosen from a range of products Finder has access to track details from and is not representative of all the products available in the market. You should consider seeking independent financial advice and consider your personal financial circumstances when comparing products.
More guides on Finder
Coronavirus vaccine stocks to watch
Our round-up of companies in the race to develop a COVID-19 vaccine, and their share price.
Artificial intelligence stocks
You might think that AI is just something you’ve seen in Black Mirror or Westworld, but it’s slowly working its way into our day to day lives. Find out how you can invest in it.
Best big data stocks to invest in
Big data is a large set of data, and it’s not named big for nothing! Discover how you can invest in companies that source and manage this type of data.
Cloud stocks | Top cloud companies to invest in 2020
Cloud computing stocks have skyrocketed during 2020. In this article we look at the best performers, how to invest in them, and also take a quick look at cloud computing ETFs for you to invest in too.
How to invest in the FTSE 100
The FTSE 100 is the UK’s most famous stock index. Here’s how you can invest in it today.
Brexit currency fallout: Exchange Rate Tracker
Follow the major events of Brexit and how they might affect you with our interactive currency exchange rate tracker.
How to invest in cotton
Ever thought about investing in cotton? Here’s our guide to the investments options at your disposal, the benefits of investing in cotton, as well as the possible risks.
How to invest in gas
Learn how to invest in natural gas, and about gas’s historical performance as an investment. Find out all the need-to-knows with our extensive guide.
Ask an Expert